Singtel to Buy US-based Cyber Security Firm Trustwave for $810M

Image Source: Northrupcorporation

Image Source: Northrupcorporation

Singapore Telecommunications Limited (Singtel) is buying US-based cyber security firm Trustwave for a deal amount of $810 million, to strengthen its information security capabilities. Post acquisition, Trustwave will operate as a standalone business unit of Singtel. It will also strengthen its position in the North America and Europe, while working closely with Singtel to broaden its overall security portfolio.

Singtel will buy a 98% equity stake in the company, while Trustwave’s chairman and CEO, Robert McCullen will hold 2%. The deal will be funded through debt and cash, to be completed in 3-6 months.

Trustwave has over three million business subscribers in 96 countries, and helps businesses fight cyber crime, protect data and reduce security risk.

Singtel has presence in Asia, Australia and Africa with over 500 million mobile customers in 25 countries, including Bangladesh, India, Indonesia, the Philippines and Thailand. In 2012, it acquires a digital advertising firm, Amobee for $321 million. Also, it owns substantial stakes in several telecommunications firms including India’s Bharti Airtel and Telkomsel in Indonesia.

According to the 2014 Gartner Information Security Forecast report, the security services industry is estimated to reach approximately $24 billion in 2018, up almost 75 percent from approximately $14 billion in 2014. It is expected to grow rapidly in the coming years due to increasing frequency and complexity of cyber-attacks.